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Product, process and organizational innovation: drivers, complementarity, and productivity effects

  • Polder, Michael
  • Van Leeuwen, George
  • Mohnen, Pierre
  • Raymond, Wladimir

We propose a model where both R&D and ICT investment feed into a system of three innovation output equations (product, process and organizational innovation), which ultimately feeds into a productivity equation. We find that ICT investment and usage are important drivers of innovation in both manufacturing and services. Doing more R&D has a positive effect on product innovation in manufacturing. The strongest productivity effects are derived from organizational innovation. We find positive effects of product and process innovation when combined with an organizational innovation. There is evidence that organizational innovation is complementary to process innovation.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 23719.

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Date of creation: Jun 2010
Date of revision:
Handle: RePEc:pra:mprapa:23719
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  8. Schmidt, Tobias & Rammer, Christian, 2007. "Non-technological and Technological Innovation: Strange Bedfellows?," ZEW Discussion Papers 07-052, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  9. Lööf, Hans & Heshmati, Almas, 2000. "Knowledge Capital and Performance Heterogeneity: A Firm Level Innovation Study," SSE/EFI Working Paper Series in Economics and Finance 387, Stockholm School of Economics, revised 14 Aug 2000.
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  11. Mahmut Yasar & Rafal Raciborski & Brian Poi, 2008. "Production function estimation in Stata using the Olley and Pakes method," Stata Journal, StataCorp LP, vol. 8(2), pages 221-231, June.
  12. Jacques MAIRESSE & Pierre MOHNEN & Elizabeth KREMP, 2005. "The Importance of R&D and Innovation for Productivity: A Reexamination in Light of the 2000 French Innovation Survey," Annals of Economics and Statistics, GENES, issue 79-80, pages 487-527.
  13. Polder, Michael & Leeuwen, George van & Mohnen, Pierre & Raymond, Wladimir, 2009. "Productivity effects of innovation modes," MPRA Paper 18893, University Library of Munich, Germany.
  14. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity across Four European Countries," NBER Working Papers 12722, National Bureau of Economic Research, Inc.
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  16. Kox, Henk L.M. & Leeuwen, George van & Wiel, Henry van der, 2007. "Market structure, productivity and scale in European business services," MPRA Paper 6137, University Library of Munich, Germany.
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  21. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999. "Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence," NBER Working Papers 7136, National Bureau of Economic Research, Inc.
  22. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
  23. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
  24. Bart van Ark & Mary O'Mahoney & Marcel P. Timmer, 2008. "The Productivity Gap between Europe and the United States: Trends and Causes," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 25-44, Winter.
  25. Chudnovsky, Daniel & Lopez, Andres & Pupato, German, 2006. "Innovation and productivity in developing countries: A study of Argentine manufacturing firms' behavior (1992-2001)," Research Policy, Elsevier, vol. 35(2), pages 266-288, March.
  26. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-48, September.
  27. repec:fth:inseep:9833 is not listed on IDEAS
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